Market Expansion Tool
Rather than choosing countries by gut feeling or based on the latest headline, exporters benefit from a repeatable selection framework. Such a framework is typically part of annual export planning sessions and can be implemented by teams of all sizes.
âłïž Step-by-Step Approach:
  1) Identify a Preliminary Long list of markets:
This includes existing export countries, markets with strong inbound inquiries, new regions mentioned in strategic conversations, and just based on gut feeling.
 2) Define Market Drivers
Come up with maximum 10 market drivers that for your company influence the level of a market appeal to you. One could think of:Â
- Market size and demand potential
- Competitive landscape
- Availability of sales and distribution channels
- Regulatory complexity
- Import TariffsÂ
- Cultural fit
- Trends
- Distance and logistics
- Existing contacts or networks in that market
- Political setting
 3) Assign weighted scoresÂ
For each country/market, fill in a score per defined market driver from 1-5. The effectiveness becomes higher, when these scores are based on research and team meetings, rather than on intuition.Â
 4) Group Countries by Priority Based on total scores, countries are categorized into:
- Group 1: Full focus â strategic core markets
- Group 2: Moderate attention â watch or nurture
- Group 3: No action â park for future review
 5) Decide on actual activities to be undertaken per groupÂ
Per group and market, a plan of activities should be drawn and initiated. Company resources must be used wisely. This means absolutely no activities should target Group 3 marketsâunless they are promoted to Group 2.
 6) Re-evaluation
This market selection exercise should be repeated frequently, at least once a year. Ideally, this is done by the entire international expansion / export team of the company. Events like the invasion of Russia in Ukraine, the import tariffs from Trump and Covid, that cause radical changes in the market circumstances, require a reconsideration of the market selection.Â
This process allows businesses to focus efforts where theyâre most likely to succeedâand to justify why they arenât pursuing certain leads, even if those leads seem promising at first glance.